Infy results fail to cheer IT stocks

Infosys announced its results today. The consolidated net profit was up 4.2% at Rs 1,302 crore versus Rs 1,249 crore quater on quater. The  consolidated net sales was up 6.8% at Rs 4,854 crore versus Rs 4,542 crore (QoQ). The EPS was at Rs 22.71 versus Rs 21.79 (QoQ).

The management gave FY09 EPS guidance and revised it to Rs 99.34-101.06. Though this was above analyts expectations but they failed to lift the sentiment towards technology stocks as the company did not give a dollar guidance revision.

Sensex closed with a loss of 456.39 points or 3.28% down at 13,469.85. Nifty closed at 4049.00 down by 113.2 points or 2.72%. BSE IT index was down by 6.73% ending up as top laggard in today’s trading session.

On the other side weak macro’s like, low May IIP number at 3.8% versus 10.6% (YoY) combined with high inflation number at 11.89% adding worries to the equity markets.

Downward trend was lead by major front runner stocks like TCS, Satyam Computers, Infosys etc which were having an average cut of more than 7%.

IT major Infosys was down more than 7% making day's low of Rs 1676. Other mid cap IT stocks like HCL Tech, Aptech, NIIT Technologies, Mphasis were down nearly 4%. Stocks like NIIT, Patni were resisting the down trend with modest gains.

-Aniket Vakharia